Foxconn's Push Into Televisions Hints at Preparation for Possible Apple Television

The New York Times reports on Foxconn's efforts to diversify its business, recognizing that while Apple is and will remain an important customer currently responsible for about 40% of Foxconn's revenue, it needs to tap into other markets in order to improve its own stability.

One major push for Foxconn has been the television market, where it has invested with Sharp in an LCD panel factory in Japan and begun releasing its own televisions in partnerships with RadioShack and Vizio.

Analysts say Foxconn’s strategy satisfies two seemingly contradictory goals. The company does not want to compete with clients directly, because it has TV assembly orders from Sony, Sharp and Toshiba. [...] But it needs to absorb excess LCD panels produced by the Sakai factory to take advantage of the lower manufacturing cost per unit. Therefore, Foxconn negotiates with partners to sell the television at or below its production cost.

foxconn_workers_2
Despite the push into televisions, including the partnership with Vizio, which is the top-selling brand in the United States for television over 60 inches, Foxconn is said to need additional large partners with Apple viewed as the primary target.

Analysts say Mr. Gou’s efforts to buy an LCD factory and vertically integrate his television manufacturing represent anticipation that orders for an Apple television product will come his way.

“Their gamble now is if Apple will put out a TV, and they should know better than anyone else in the world,” said [Thompson] Wu, the Credit Suisse analyst. “They’re making a bet that it’ll work.”

Almost exactly one year ago, Foxconn chairman Terry Gou was initially reported to have confirmed that the company was making preparations for an Apple television set, but the company quickly clarified the situation to deny that any specific acknowledgement had been made.

Foxconn noted that Gou had refused to discuss or speculate on any specific product and merely stated generally that Foxconn is "always prepared to meet the manufacturing needs of customers should they determine that they wish to work with Foxconn in the production of any of their products".

Related Roundups: Apple TV, tvOS 14
Buyer's Guide: Apple TV (Don't Buy)

Top Rated Comments

(View all)
Avatar
98 months ago
Sometimes I imagine the day-to-day job of an analyst involves a lot of this:

"Siri, remind me every four weeks to release a research note about an Apple TV."
"Siri, remind me every two weeks to release a research note about an Apple iWatch."
"Siri, remind me every three weeks to release a research note about iPhone supply chain inventory."
Score: 12 Votes (Like | Disagree)
Avatar
98 months ago
hmmm

Only time will tell if this proves to be a success for Apple. I have serious doubts that they should be attempting to compete in a market where established hard brand leaders exist.

4K Television will ultimately become commonplace, but not ye and not for a few years in my opinion. Yes, Apple have the available funds to allow them to give this a try, but personally I would prefer they remain focus on what they know, rather then trying to enter a market in which they really have no established mark.


You do know that Apple entered a market (mobile phones) in which they had no established mark? :apple:
Score: 8 Votes (Like | Disagree)
Avatar
98 months ago

Most of what Apple sells is made in China.
Not seeing any viable complaints about quality.

----------


Ya know, if that lawnmower or barbecue was built to Apple's standards, worthy of the Apple logo, I'd buy it - not because "it's Apple", but because I could trust it will work the way I expect and not stop working or rust out not long after purchase.

A lot of businesses would make the right long-term business decision by focusing on usability rather than being the cheapest POS out there.


Because the lawnmowing industry has such a reputation for products that stop working or rust out? Have you bought a comparably priced lawn mower in the, I don't know, past 20 years?

People, stop using comparisons that make no sense. If you were to buy virtually any product that cost as much as an Apple item, you wouldn't be replacing it in the first place. Don't say you'd buy an Apple super deluxe lawnmower when your entire life you've used hand me down push mowers.

Oh, if Apple made grills you'd buy one because you wouldn't be worried about quality of product? Have you ever used a Weber? Believe it or not, companies exist in their respective marketplaces that have high standards and quality products that equal or exceed Apple's products in the technology sector.
Score: 4 Votes (Like | Disagree)
Avatar
98 months ago
Does anyone read the titles before posting an article? This title sounds so awkward.
Score: 4 Votes (Like | Disagree)
Avatar
98 months ago
I'm in the market for a new TV. Just give me something to buy. :D
Score: 4 Votes (Like | Disagree)
Avatar
98 months ago

You don't think the millions of image conscious Americans are not going to pay a premium for a all metal tv with a Apple logo on it? They won't be able to make enough.


Sure, millions will. Millions would also pay premium for lawnmower or a barbeque with an Apple logo on it. Just because something will sell does not mean it is the right long-term business decision.
Score: 3 Votes (Like | Disagree)

Top Stories

First Impressions From New iPhone 12 and 12 Pro Owners

Thursday October 22, 2020 4:20 pm PDT by
It's already Friday, October 23, in Australia and New Zealand, which means some customers who purchased an iPhone 12 or 12 Pro already have their new devices in hand. We've seen dozens of reviews of the iPhone 12 and iPhone 12 Pro from media sites, but now first impressions from regular Apple customers are available. Image via MacRumors reader Boardiesboi New iPhone 12 and 12 Pro owners are...

Early iPhone 12 Tests Show Ceramic Shield is Stronger and More Scratch Resistant Than iPhone 11 Glass

Friday October 23, 2020 1:21 pm PDT by
Apple's new iPhone 12 models are protected by a Ceramic Shield cover glass that has nano-ceramic crystals infused right into the glass to improve durability. According to Apple, Ceramic Shield offers four times better drop protection than the glass used for the iPhone 11 models. YouTube channel MobileReviewsEh conducted some tests on the iPhone 12 using a force meter to compare its performance ...

Apple Distributing New Heated Display Removal Machine for iPhone 12 Repairs

Thursday October 22, 2020 6:20 pm PDT by
Apple is providing Genius Bars and Apple Authorized Service Providers with a new heated display removal fixture for iPhone 12 and iPhone 12 Pro repairs, according to information obtained by MacRumors from a reliable source. To open iPhone 12 models, technicians will be required to slide the device into a specialized tray, and then place the tray into the high-temperature fixture for two...

Apple VP Kaiann Drance Interview Addresses Battery Life, MagSafe, and Power Adapter Concerns

Friday October 23, 2020 3:37 am PDT by
Apple's Vice President of iPhone Marketing, Kaiann Drance, has provided a new interview to Rich DeMuro on the Rich on Tech Podcast, to discuss the iPhone 12 and iPhone 12 Pro. Although much of the interview repeated points from Apple's "Hi, Speed" event, there were a number of interesting tidbits regarding the affect of 5G on battery life, MagSafe concerns, and the lack of a power adapter in...

Teardown Video Confirms iPhone 12 and iPhone 12 Pro Use Same 2,815mAh Battery

Thursday October 22, 2020 9:47 am PDT by
With the iPhone 12 launching on Friday and in just a few hours to Australia and New Zealand, hands-on videos, teardowns, reviews, and other iPhone-related content has been coming out. A new teardown video delves into both the iPhone 12 and the 12 Pro, confirming battery life for both models and giving us a closer look at their internals. The video from Io Technology is in Chinese, but ...

Images of Supposed AirPods Diagnosis Tool Shared Online

Thursday October 22, 2020 5:24 am PDT by
Apple is reportedly rolling out a new tool to Apple service providers for testing AirPods, according to leaker known as "Fudge," who shared images of the tool on Twitter. Apple appears to be seeking to reduce unnecessary AirPods services by more accurately diagnosing the cause of a fault. Instances of a dirt-blockage, which may be difficult to ascertain visually, can apparently be...

New Photos Offer Better Look at iPhone 12 Color Options

Tuesday October 20, 2020 2:34 am PDT by
As we wait for the iPhone 12 review embargo to lift later today, more pictures are circulating of the devices in real-world lighting conditions, providing a better look at the different colors available. Leaker DuanRui has shared images on Twitter of the iPhone 12 in white, black, blue, green, and (PRODUCT)RED. The black and white colors are similar to the iPhone 11 colors, but the other...

Apple's AirTags Revealed in Newly Published Patent Applications

Thursday October 22, 2020 9:13 am PDT by
Two patent applications filed by Apple appear to depict the company's widely expected AirTags item trackers (via Patently Apple). The filings, which include a large number of images, are titled "Mounting Base for a Wirelessly Locatable Tag" and "Fastener with a Constrained Retention Ring," and describe a wirelessly locatable tag that can be used to determine the absolute location of an...

iPhone 11 Pro Outlasts iPhone 12 and 12 Pro in Extensive Battery Life Test

Friday October 23, 2020 8:36 am PDT by
Arun Maini today shared a new side-by-side iPhone battery life video test on his YouTube channel Mrwhosetheboss, timing how long the new iPhone 12 and iPhone 12 Pro models last on a single charge compared to older models, with equal brightness, settings, battery health, and usage. All of the devices are running iOS 14 without a SIM card inserted. In the test, the iPhone 11 Pro outlasted both ...

Apple Warns MagSafe Charger Can Leave Circular Imprints on Leather Cases

Friday October 23, 2020 3:23 pm PDT by
If you keep your iPhone in a leather case while charging with Apple's new MagSafe Charger, the case might show circular imprints from contact with the accessory, according to a new Apple support document published today. Apple's leather cases for the iPhone 12 and iPhone 12 Pro are not available until November 6, but a MacRumors reader has already shared a photo of a circular imprint on...